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View All NewsAMN revenue up 11% in Q4 with growth in travel nurse and allied
Fourth-quarter revenue rose 11.0% at AMN Healthcare Services Inc. (NYSE: AMN). Growth was led by the San Diego-based healthcare staffing firm’s “nurse and allied solutions” business, which includes travel nurse and allied staffing; it posted revenue growth of 18.1%.
Separately, travel nurse revenue rose 9% in the fourth quarter, but the increase on an organic basis was 2%. Meanwhile, allied revenue rose 45% year over year in the fourth quarter with the increase at 7% when measured on an organic basis
| (US$ thousands) | Q4 2019 | Q4 2018 | % change |
| Revenue | $586,892 | $528,635 | 11.0% |
| Gross profit | $197,133 | $172,456 | 14.3% |
| Gross margin percentage | 33.6% | 32.6% | |
| Net income | $27,482 | $35,613 | -22.8% |
Gross margin improved in the fourth quarter. The company cited an increase in higher-margin labor disruption activity in its nurse and allied segment as well as a favorable shift in business mix in its “other workforce solutions” segment.
Revenue by segment
| (US$ thousands) | Q4 2019 | Q4 2018 | % change |
| Nurse and allied solutions | $388,776 | $329,317 | 18.1% |
| Locum tenens solutions | $77,925 | $81,850 | -4.8% |
| Other workforce solutions | $120,191 | $117,468 | 2.3% |
AMN also announced that it acquired b4health, a float-pool management technology solution and vendor management system, in December. In addition, the company said the $475 million acquisition of Stratus Video, a video remote language interpretation service, is expected to close today.
Full-year results
| (US$ thousands) | 2019 | 2018 | % change |
| Revenue | $2,222,107 | $2,136,074 | 4.0% |
| Gross profit | $743,465 | $696,383 | 6.8% |
| Gross margin percentage | 33.5% | 32.6% | |
| Net income | $113,988 | $141,741 | -19.6% |
Guidance
AMN forecast first-quarter revenue to be between $598 million and $605 million, representing a year-over-year increase of between 12.3% and 13.6%.
Share price and market cap
Shares in AMN were up 8.10% to $ 77.81 as of 11:30 a.m. Eastern time today; the company had a market cap of $3.36 billion, according to FT.com.